Impact of Accounting Rules on Competitiveness of US Corporations in Business Acquisitions

Agami, Abdel M.
March 2000
Multinational Business Review (St. Louis University);Spring2000, Vol. 8 Issue 1, p1
Academic Journal
Business acquisitions have increased in recent years both between local corporations and across borders. Most mergers and accessions claim some synergy as a result of the merger. However, accounting for business acquisitions tend to cloud merger decisions, distort the financial position of the combining entities and, in some cases, contribute to their failure. This article surveys the methods of accounting for business acquisitions, both in the US and in other countries. The purpose of the survey is to evaluate the accounting methods used for business acquisitions as to their effect on business acquisition decisions and on reflecting the economic substance of the transaction, and to recommend a method that achieves these objectives


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